Answer:
How much debt and equity has the firm issued to finance its assets?
Balance Sheet
How much cash is a firm generating through operating, investing, and financing activities?
Statement of Cash Flows
If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:_________.
Overstate its earnings
Explanation:
The statement of cash flows in the financial statements prepared by the accountant shows outgoing and incoming cash for the period and also the cash balance . Balance sheet also called statement of financial position reflects or shows the assets and liabilities of the company which are broken down to equities and debts in classifying capital sources
Senior management can overstate earnings if company's performance in the short-run is the basis for their earnings. This is because long-term performance of company is not considered and short run earnings of company is characterized by short-sightedness, inflated figures and inconsistencies in performance to maximize earnings
Can company keep their western value and do business in saudi arabia?
Answer:
Yes
Explanation:
A company can easily keep its western values and still do business in Saudi Arabia where values are different. The successfullness of this endeavor depends on the market in which the business operates and the demand in Saudi Arabia for it. If the Demand in Saudi Arabia is high due to the lack of that product/service locally then the company's western values will be what makes them profitable.
Corporate finance is concerned with the different aspects of a business's financial management. The chief financial officer (CFO) is the top financial position in the organization and oversees several tasks. The CFO is not responsible for which of the following departments? A. Human resources B. Marketing C. Production D. Security analyst relations E. Accounting
Answer:
The answer is A. B. and C.
Explanation:
The Chief Financial Officer (CEO) will not be responsible for the following:
1. Human resources.
2. Marketing. Jobs for marketers
3. Production.
But rather, the CFO will perform the following (according to the question)
1. Security analyst relations.
2. Accounting.
CFO suoervises all accounting and Finance-related issues.
When having to have a difficult conversation with upper managers, you can increase success by:__________a) Framing the issue in familiar language.b) Not asking for further budget allocation.c) Making sure you have just met your last deadline.d) Framing the issue in familiar language and making sure you have just met your last deadline.
Answer:
a) Framing the issue in familiar language
Explanation:
Since in the question it is mentioned that there is a difficult conversation with upper level manager so here the success could be increased by framing the issue so that the issue could be determined in a language that is familiar so that the issue could be resolved immediately by taking the proper actions in order to complete the task before time or within the time
Hence, the correct option is a.
Compute the specified ratios using Hilda Company's balance sheet at December 31, 2011.AssetsCash $14,000Marketable securities 7,000Accounts receivable 14,000Inventory 11,000Property and equipment 170,000Accumulated depreciation (11,500)Total assets $204,500EquitiesAccounts payable $8,500Current notes payable 3,500Mortgage payable 4,500Bonds payable 23,000Common stock 105,000Retained earnings 60,000Total liabilities and stockholders' equity $204,500The average number of common stock shares outstanding during 2011 was 850 shares.Net income for the year was $15,000.Round your answer to 2 decimal places.Required:1. Compute each of the following:a) Current ratio.b) Earnings per share.c) Quick (acid-test) ratio.d) Return on investment.e) Return on equity.f) Debt to equity ratio.
Answer:
a) Current ratio.
= Current assets/ current liabilities
= ( Cash + Marketable securities+ Accounts receivable + Inventory) / (Accounts Payable + Current notes payable )
= (14,000 + 7,000 + 14,000 + 11,000) / ( 8,500 + 3,500)
= 3.83
b) Earnings per share.
= Net Income / Common stock outstanding
= 15,000 / 850
= $17.65
c) Quick (acid-test) ratio.
= (Current assets - Inventory ) / Current liabilities
= (14,000 + 7,000 + 14,000) / ( 8,500 + 3,500))
= 2.92
d) Return on investment.
= Net Income/ total assets
= 15,000 / 204,500
= 7.33%
e) Return on equity.
= Net Income / Common equity
= 15,000 / ( Common stock + retained earnings)
= 15,000 / 165,000
= 9.09%
f) Debt to equity ratio.
= Debt / Equity
= ( Accounts payable + Current notes payable + Mortgage payable + Bonds payable) / 165,000
= (8,500 + 3,500 + 4,500 + 23,000) / 165,000
= 23.94%
Which of the following best represents the three types of business organizations today? a. Financial, sales, and product creation b. Services, marketing intermediaries, and manufacturing c. Service, sales, and manufacturing d. Purchasing, advertising, and manufacturing
Answer: b. Services, marketing intermediaries, and manufacturing
Explanation:
The three types of businesses today;
Services - Service companies sell intangible goods otherwise known as services to people who will derive value from them. As such they are highly focused on customer satisfaction which leads to them employing individuals with the knowledge and experience to provide services. Examples include; Accounting firms, law firms, etcMarketing Intermediaries - These are the middle men in the market. The facilitate the flow of goods from the producer/ supplier to the end user. They include: agent, wholesalers, retailers, financial institutions etc. Manufacturing - Manufacturing businesses are those who produce the goods that we use today. They are most probably the biggest and most valuable of the 3 types as they comprise of all goods manufactured in the market including technology, commodities, construction, automobiles and the like.b. Services, marketing intermediaries, and manufacturing
A business organization is a legal entity whose purpose is to carry on a commercial activity by supplying goods or services to clients.
Marketing intermediaries (also known as Distribution intermediaries) are one or more firms or persons who operate as a connection in the distribution of products between manufacturers and customers.
b. Services, marketing intermediaries, and manufacturing represents the three types of business organizations today
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What are the tools of macroeconomic policy?
Answer:
° Fiscal policy
° Monetary policy
° Exchange rate policy
Explanation:
Macro economics policy are tools used by a country's government through their central bank to influence the supply of money, control interest rate in their economy which will lead to economy stability and growth. The tools are explained below. An increase in government spending will make funds available to the household and firms hence increases the volume of money supply in the economy, while a decrease in government spending will also reduce the availability of money to household and firms.
° Fiscal policy . This refers to the use of tax and government expenditure to regulate the supply of money an economy. For instance, government through its central bank uses tax cut to increase the flow of money in an economy. Also, if the government feels that the supply of money in circulation is too much, which could result in inflation, government can increase taxes to be paid by individuals, firms and businesses which in turn will reduce the availability of money.
° Monetary policy. Monetary policy refers to various tools used by the government to control the flow of money in an economy, which includes open market operation, special reserves, interest rate adjustment. For instance, the government through CBN could buy or sell government issued securities which will ultimately affect the supply of money in an economy. Also, there is usually a minimum amount of reserves which must be held by commercial banks, which ultimately affects the supply of money. An increase in reserve ratio reduces the ability of banks to lend money to their customers while and a reduction in the reserve ratio increases their ability to lend to the public hence increases money supply.
° Exchange rate policy. The value of a country's currency in relation to other country's currency is referred to as exchange rate. Exchange rate policy is used to control inflation, preserve the value of domestic currency and also to maintain a favorable external balance of payments of a country.
How are goods produced? Determines:a) who receives the goods that are produced. b) how tastes and preferences are determined. c) how resources are combined in the production of goods. d) the types and quantities of goods and services produced.
Answer:
c) how resources are combined in the production of goods.
Explanation:
In order to meet the unending needs and wants of consumers, to satisfactorily provide products that meets their requirements, tastes or preferences various manufacturing companies use five (5) main methods of production, and these are; labour-intensive production, mass production, batch production, capital-intensive production and job production.
Generally in Economics, the question of how goods are produced, determines how resources are combined in the production of goods.
This ultimately implies that, before a manufacturer produce its goods it determines the amount of resources that are available. These resources that are to be combined for the purpose of production of goods are entrepreneur, land, labor, and capital, which are generally referred to as the four (4) factors of production.
One key goal of marketing is to
Answer:
Increase Sales and/or Revenue
If you are selling products or services, you may want to focus on selling more of those offerings. This is one of the marketing objectives that will increase revenue and the amount of money coming into your business.
Explanation:
Plz Mark me as brainliest
Answer:promote new products or services
Grow digital presence
Lead generation
Develop brand loyalty
Retain existing customers
Target new customers
Explanation:
Residual Claims Haung. Inc; is obligated to pay its creditors $10,700 very soon.1. What is the market value of the shareholders equity if assets have a market value of 9900?2. What if assets equal $9,990?
Answer and Explanation:
The computation of the shareholder equity for each case is shown below:
a. For case one
As we know that
Total assets = Total liabilities + stockholder equity
$9,900 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,900
= $800
b. For case two
Total assets = Total liabilities + stockholder equity
$9,990 = $10,700 + stockholder equity
So, the stockholder equity is
= $10,700 - $9,990
= $710
The rivalry among competing sellers tends to be less intense when: Select one: a. Industry conditions tempt competitors to use price cuts or other competitive weapons to boost sales b. Industry rivals are not particularly aggressive in drawing sales and market share away from rivals c. Both of the above d. None of the above
Answer:
The correct answer is the option B: Industry rivals are not particularly aggressive in drawing sales and market share aways from rivals.
Explanation:
To begin with, when it comes to rivalry among sellers of a same industry the competition will be less intense when they tend to be not particularly aggressive in terms of achieving every sale or getting more portions of the market so that they could be the only ones. Therefore that if this type of competitors exist, the ones that are not aggressive, there is not a lot of rivalry in the industry where they sell. Moreover, that will determine that the product sometimes might be quite similar or not so distinctive due to the fact that they do not fight with each other.
What is the Veteran Administration’s primary role in the mortgage market?
A) To insure loans made by approved lenders.
B) To guarantee loans made by lenders.
C) To lend money directly to borrowers.
D) To buy loans from other secondary mortgage marketers.
Answer: To guarantee loans made by lenders
Explanation:
The primary mortgage market is simply the market where a mortgage loan can be gotten by the borrowers from a primary lender while the secondary mortgage market is simply a marketplace where the home loans are purchased and sold between the lenders and the investors.
The Veteran Administration’s primary role in the mortgage market is guarantee loans made by lenders.
The collision repair industry does what volume of business per year? A. $1 million B. $10 Million C. $1 Billion D. $10 Billion
Answer: D. $10 Billion
Explanation:
The United States has a large economy with a very large number of cars which was estimated to be around 280 million in the last quarter of 2019. With these many cars it would be improbable that there would not be quite a number of accidents and there are. In the year 2018, around 12 million cars were involved in motor accidents.
With such a staggeringly high number of cars involved in collisions, it is no wonder that it is estimated that the collision repair industry does around $10 billion worth of business every year.
Which of the following is an example of nonassertive behavior in a Western culture?A. Briefly gathering your thoughts before respondingB. Avoiding eye contact when talking to someoneC. Folding hands while talkingD. Apologizing for mistakes and moving on with the conversation
Answer:
B. Avoiding eye contact when talking to people.
Explanation:
There are some people who do not have control over themselves. Oftentimes, others take undue advantage over them because they lack self confidence, and most often than not, do not always take charge of interpersonal relationships. This type of behavior is called non assertiveness.
Non assertive people easily gets influenced by people hence are termed as being manipulable. Some of the causes are ; lack of motivation, having high regards or expectation of others, always dwelling on the past, lack of focus on what they intend to achieve etc. However, this type of behavior can be corrected through constant feedback to whoever that is involved. Also, such people should be treated respectfully by giving them the attention they required.
The primary function of the Income Statement is to:a. Show the company's value as of a given point in timeb. Determine if the company will have enough cash to operate properlyc. Determine taxes owed or not owedd. Compare the company's assets against the company's liabilitiese. Measure the company's financial performance over a period of time
Answer: e. Measure the company's financial performance over a period of time
Explanation:
The Income statement shows how the company performed financially in a certain period in relation to their operating activities.
By subtracting the expenses from the revenue, the income statement shows how the company was able to put its investments and assets to good use to be able to provide value for the shareholders.
The Income statement is prepared per period so the information it shows is period specific.
Match the accounting terminology to the definitions (Click the icon to view the definitions.)
Definitions
1. Certified management accountants
2. Accounting
a. information system that measures business activities, processes that information into reports, and communicates the results to decision makers
b. professional accountants who serve the general public
c. person or business to whom a business owes money
d. field of accounting that focuses on providing information for internal decision makers professionals who work for a single company field of accounting that focuses on providing information for external decision makers
3. Managerial accounting
4. Certified public accountants
5. Financial accounting
6. Creditor
Answer:
a. Accounting.
b. Certified public accountants.
c. Creditor.
d. Managerial accounting.
e. Certified management accountants.
f. Financial accounting.
Explanation:
1. Accounting: information system that measures business activities, processes that information into reports, and communicates the results to decision makers.
2. Certified public accountants: professional accountants who serve the general public.
3. Creditor: person or business to whom a business owes money.
4. Managerial accounting: field of accounting that focuses on providing information for internal decision makers.
5. Certified management accountants: professionals who work for a single company.
6. Financial accounting: field of accounting that focuses on providing information for external decision makers.
Another fix for_____complexity involves protection against an inherent single-point-of-failure dilemma.
Answer: runtime
Explanation:
Time complexity is a concept that simply deals with quantification of the amount of time that is typically taken by an algorithm or set of code to run or process as a function of the input amount.
Runtime efficiency is essential as another another fix for its complexity involves protection against an inherent single-point-of-failure dilemma.
What was it about this job description that caught your eye?
Answer:
Interest in teaching!
Explanation:
What was it about this job description that caught my eye?
I had just finished from the mandatory National Youth Service Corps program in my country and wanted a job. Now, I had a certificate in Economics and inborn talents of teaching & creative writing. As a keen online researcher, I began searching for a job. Since I did a lot of presentation and public speaking in school, and had some years of teaching experience; teaching jobs were on my list of jobs to apply for.
On a fateful day, I stumbled upon this vacancy and was immediately interested because of the title "Online Tutor". I was excited that I could take my teaching expertise abroad. I applied for it and definitely, the job role is nothing different from the title or my expectations.
Why is Business process reengineering and organizational change seen to have a pain-pleasure relationship
Answer:
Explanation:
Business Process Reengineering reduces costs and the number of cycle by eliminating activities that are deemed unworthy and lack productivity. It also to an extent, takes out the employees who perform them these unproductive tasks.
Reorganization on the other hand, decreases the need for management layers by teams. Reorganization also accelerates the flow of information. It eliminates the errors and rework that are caused by different lots of handoffs. And I should mention, Reorganization definitely improves quality.
Answer:
The pain-pleasure relationship is simple.
Business process restructuring is another word for change.
Change can be difficult to implement, much more difficult or painful to accept.
Given that organisations are mostly people, and people can, for a myriad of reasons, fight change, the process, therefore, is arduous.
Business Process Re-engineering sometimes means people will become redundant because a particular value-adding process has become outdated by new technology.
It's easy to say "people can prevent themselves from becoming redundant by coming up to speed with new technology". However, what happens to a 50-year-old who still drives a taxi for a living, if tomorrow the market develops a strong affinity for driverless cars? Will the 50-year-old go on to learn how to fix driverless cars at that age? Even if the technology was opensource and non-proprietary, will it not be too late for the taxi driver to enrol for programming lessons or advanced auto mechanics maintenance courses?
Business Processes can be like that. The goal of reengineering the process of an organisation is to achieve a higher level of effectiveness, efficiency, productivity and profitability.
To maximize the pleasure which comes with having a more productive workforce at a lower cost, business owners can (where possible,) give adequate time for changes to be communicated, accepted, bought-into and prepared for.
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A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture. Which of the following items would be increased by this sales transaction?A) Total Assets.B) Accounts Receivable.C) Total Liabilities.D) Inventory.E) Revenue.
Answer:
A) Total Assets
B) Accounts Receivable
E) Revenue.
Explanation:
Accounts Receivable are being increased because the customer took the goods on credit and agreed to pay in 30 days.
Accounts Receivable is an asset so the total asset will increase. Even though inventory decreases, the amount that the good was sold for exceeds inventory cost so the net benefit will increase assets.
Revenue is earned when a good is sold. $10,000 worth of goods were sold so that would be $10,000 in revenue.
What is the best study group?
Answer:
Study group are the institutions which provide students with the lectures and note. They help students for preparing assignments and hep them with their presentations. There can also be various study groups which help students with thesis writing.
Explanation:
The main purpose of study groups is to bring all the intellectual at one platform. There are multi talented youth who has different skills. These students are united at one platform and their intellectual is exchanged and enhanced by healthy discussions.
Set up a skeletal profit and loss statement in both dollars and percentage if your year-end profit is $7800, The profit percentage is 3.9%, and your yearly cost of goods sold is $120,000
Answer:
A skeletal profit and loss statement is basically a very condensed income statement that doesn't include many details, it only includes the essential elements:
Yearly revenue $200,000 100%
Cost of goods sold ($120,000) 60%
Gross profit $80,000 40%
Operating expenses ($72,200) 36.1%
Net profit $7,800 3.9%
Which of the following would have no effect, either direct or indirect, on an organization's cash budget?
A. Sales revenues
B. Outlays for proessional labor
C. Advertising expenditures
D. raw material purchases
E. None of the above, as all of these items would have some influence
Answer: E. None of the above, as all of these items would have some influence
Explanation:
All of the options will be listed in the cash budget as they all have some influence in the the cash received (spent) by the company.
Sales revenue will be included as a cash inflow in the business whilst processional labor, advertising expenditure and raw material purchases will be cash outlays.
Which of the following do you think would lead to an increase in the current demand for beef?
a. higher pork prices
b. higher consumer income
c. higher prices of feed grains used to feed cattle
d. widespread outbreak of mad cow or hoof-and-mouth disease
e. an increase in the price of beef
Answer:
b. higher consumer income
In an underwriting, which of the following is earned by a syndicate member who sells the issue directly to the public?a. Underwriter's Concessionb. Selling Concessionc. Spreadd. Management Fee
Answer: underwriter's concessions
Explanation:
An underwriting simply means to determine the price and risk of a particular security. An underwriting is typicall seen during initial public offerings, whereby investment banks buy securities at first and then later sell the security in the market.
In an underwriting, the underwriter concession is earned by a syndicate member who sells the issue directly to the public.
Cute Camel Woodcraft Company's income statement reports data for its 1st year of operation. The Firm's CEO would like sales to increase by 25% next year. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest & taxes (EBIT). The company's operating costs (excluding depreciation & amortization) remain at 65% of net sales, & its depreciation & amortization expenses remain constant from year to year. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). In year 2, Cute Camel expects to pay $300,000 & $1,824,525 of preferred & common stock dividends, respectively.Complete the Year 2 income statement data & then answer the questions that follow. Year 1 Year 2 (Forecasted)Net Sales $20,000,000 Less: operating costs, except 13,000,000depreciation & amortization Less: depreciation & amortization expenses 800,000 800,000Operating Income (EBIT) $6,200,000 Less: interest expense 620,000 Pre-Tax Income (EBT) 5,580,000 Less: taxes (40%) 2,232,000 Earnings after taxes $3,348,000 Less: preferred stock dividends 300,000 Earnings available to common shareholders 3,048,000 Less: common stock dividends 1,506,600 Contribution to Retained Earnings $1,541,400 $1,929,975Given the results of the previous income statement calculations, complete the following statements:A. In year 2, if cute camel has 25,000 shares of preferred stock issued & outstanding, then each preferred share should expect to receive ($12, $30, $18 or $24) in annual dividends.B. If cute camel has 200,000 shares of common stock issued & outstanding, then the firm's earnings per share (EPS) is expected to change from ($31, $16.74, $27.90 or $15.24) in year 1 to ($33.79, $39.75, $18.77 or $20.27) in year 2.
Complete Question
The complete question is shown on the first image
Answer:
The prepared income statement and the calculation is shown on the second , third and fourth uploaded image
A
the amount of preference dividend per share is [tex]Z = \$ 12[/tex]
B
The solution and the calculation is shown fifth uploaded image
Explanation:
Generally the amount of preference dividend per share is mathematically represented as
[tex]Z = \frac{ Amount \ of \ preferred dividend \ paid\ _{2nd year } }{ Number \ of \ preferred \ share }[/tex]
=> [tex]Z = \frac{300000}{25000}[/tex]
=> [tex]Z = \$ 12[/tex]
Today, Courtney wants to invest less than $5,000 with the goal of receiving $5,000 back some time in the future. Which one of the following statements is correct?a. The period of time she has to wait until she reaches her goal is unaffected by the compounding of interest.b. The lower the rate of interest she earns, the shorter the time she will have to wait to reach her goal.c. She will have to wait longer if she earns 6% compound interest instead of 6% simple interest.d. The length of time she has to wait to reach her goal is directly related to the interest rate she earns.e. The period of time she has to wait decreases as the amount she invests today increases.
Answer:
E. The period of time she has to wait decreases as the amount she invests today increases
Explanation:
Please calculate the answer to the following problem, showing all of your work. NO CREDIT will be given if I cannot follow your calculations. This assignment should be hand-written.
The percent markup on a pickup truck is known to be 112% based upon cost to the seller. If the seller paid $15,800 for the truck, what would be the corresponding percent markup based upon the sale price? Please round your answer to nearest tenth of one percent.
Answer: 52.8%
Explanation:
The mark-up is simply referred to as the amount that is been added to the cost price of a particular good or service so that the profits and the overheads can be covered.
Based on the information given in the question, the mark up in terms of dollars would be calculated as:
= 15800 × 112%
= 15800 × 1.12
= 17696
The sale price will therefore be:
= 15800 + 17696
= 33496
The percent markup based upon the sale price would be:
= 17696/33496
= 52.8%
The Signal Company has operating income (EBIT) before depreciation expense of $1,500,000. The company’s depreciation expense is $400,000, and it has a 25% tax rate.A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.
Answer:
A. Net income is $825,000; and Net cash flow is $1,225,000.
B. Net income is $750,000; and Net cash flow is $1,150,000.
C. Parts A net cash flow will equal part B net cash flow by deducting $75,000 difference, or Parts B net cash flow will equal part A net cash flow by addiing $75,000 difference.
Explanation:
The following are given:
Operating income (EBIT) before depreciation expense = $1,500,000
Depreciation expense = $400,000
Tax rate = 25%
We therefore proceed as follows:
A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.
Calculation of net income
Income after depreciation but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense = $1,500,000 - $400,000 = $1,100,000
Tax expense = Income after depreciation but before tax * Tax rate = $1,100,000 * 25% = $275,000
Net income = Income after depreciation but before tax - Tax expenses = $1,100,000 - $275,000 = $825,000
Calculation of net cash flow
Net cash flow = Net income + Depreciation expense = $825,000 - $400,000 = $1,225,000
B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.
Calculation of net income
Income after depreciation and interest expenses but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense - Interest expense = $1,500,000 - $400,000 - $100,000 = $1,000,000
Tax expense = Income after depreciation and interest expense but before tax * Tax rate = $1,000,000 * 25% = $250,000
Net income = Income after depreciation and interest expense but before tax - Tax expenses = $1,000,000 - $250,000 = $750,000
Calculation of net cash flow
Net cash flow = Net income + Depreciation expenses = $750,000 + $400,000 = $1,150,000
C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.
Difference in net income = Part A net income - Part B net income = $825,000 - $750,000 = $75,000
Difference in net cash flow = Part A net cash flow - Part B net cash flow = $1,225,000 - $1,150,000 = $75,000
Each of Part A net income and net cash flow is $75,000 greater than part B because part A is an 100% equity financed with the need to pay annual interest expense on debt of $100,000 like in Part B before calculating the Tax expense and the net income.
The $75,000 diffence is as a result of additional tax that Part A has to paid on $100,000. That is,
Additional tax expense in part A = Interest expense not paid in Part A * Tax rate = $100,000 * 25% = $25,000
Diffrenrence = Intererest expense not paid in part A - Additional tax expense = $100,000 - $25,000 = $75,000
For example, if there is no annual interest of $100,000 to be paid in part B, we can then reconcile by just addinf back the difference as follows:
Part B new net cash flow = Part B initial cash flow + Difference in net cash flow = $1,150,000 + $75,000 = $1,225,000 = Part A net cash flow
Also, if annual interest expense has to be paid in part A as a result of being now financed by debt, we will just deduct the difference as follows:
Part A new net cash flow = Part A initial cash flow - Difference in net cash flow = $1,225,000 - $75,000 = $1,150,000 = Part B initial net cash flow.
a. The owner invested $18,000 cash in the company in exchange for its common stock. b. The company purchased supplies for $1,250 cash. c. The owner invested $11,500 of equipment in the company in exchange for more common stock. d. The company purchased $350 of additional supplies on credit. The company purchased land for $10,500 cash.Required:Write down the impact of each transaction on individual items of the accounting equation.
Answer:
since there is not enough room here I used an excel spreadsheet
Explanation:
The impact of each transaction on individual items is shown with the help of an accounting equation.
What is an accounting equation?The accounting equation is a formula that shows the total assets of a company are equal to the sum of its liabilities and shareholders' equity (Assets = Liabilities + Equity). The clear relationship between a company's liabilities, assets, and equity is the foundation of double-entry accounting.
The accounting equation can be reconfigured in three ways: Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses = Assets. Assets minus liabilities equals owner's equity. Assets minus liabilities equals net worth.
Therefore, the effect of the above transactions is shown in the form of accounting equation is attached below.
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Which of the following describes a position trade? A. Buying a security into inventory directly from a customer with a mark-down B. After receiving a buy order from a customer, the dealer then purchases the stock into inventory and resels t to the customer C. Simultaneously buying and selling short the same or equivalent security D. Selling stock at the direction of a customer and using the proceeds to buy another stock for that customer
Answer:
B. After receiving a buy order from a customer, the dealer then purchases the stock into inventory and resels to the customer
Explanation:
Position trade has to do with anticipating an increase in market price by purchasing some stocks for keeps such that one sells when prices are higher.
In another sense, it is purchasing stocks when one is certain of selling them such purchasing based on existing client's demand for the stock as contained in option B.